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Keep it real: Measuring real inequality using survey data from developing countries

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  • Ulrik Beck

Abstract

This paper investigates how two effects drive wedges between nominal and real inequality estimates. The effects are caused by (i) differences in the composition of consumption over the income distribution coupled with differential inflation of consumption items; and (ii) quantity discounting effects for the non-poor. Household-specific deflators are estimated using 15 surveys collected in six countries in the period 1999-2011. In some countries (Mozambique, Tanzania, Malawi, and Pakistan), nominal inequality is lower than real inequality.

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  • Ulrik Beck, 2015. "Keep it real: Measuring real inequality using survey data from developing countries," WIDER Working Paper Series wp-2015-133, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2015-133
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    Cited by:

    1. Gürer Eren & Weichenrieder Alfons, 2020. "Pro-rich inflation in Europe: Implications for the measurement of inequality," German Economic Review, De Gruyter, vol. 21(1), pages 107-138, April.
    2. Alfons J. Weichenrieder & Eren Gürer, 2020. "Inflation, Inflationsmessung und Zentralbankpolitik," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(11), pages 834-838, November.

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